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CASE DOCTRINE
1. Dignos v. CA Absolute vs. Conditional Sale. Even if the contract
purports as a Deed of Conditional Sale, if from the
nature of the agreement is absolute and there shows no
stipulation reserving the title of property on the vendors
nor does it give them the right to unilaterally rescind
them upon non-payment of the balance thereof within
the fixed period makes it absolute.
Elements of a valid contract of sale: (1) Consent or
meeting of minds; (2) determinate subject matter; and
(3) price certain in money or its equivalent.
2. Tan v. Benorilao Conditional Sale vs. Contract to Sell. The Deed of
Conditional Sale, as termed by the parties, states that
"in case, BUYER has complied with the terms and
conditions of this contract, then the SELLERS shall
execute and deliver to the BUYER the appropriate Deed
of Absolute Sale". The very essence of a contract of sale
is the transfer of ownership in exchange for a price paid
or promised, but where the seller promises to execute a
deed of absolute sale upon the completion by the buyer
of the payment of the price, the contract is only a
contract to sell, even if it is denominated as a Deed of
Conditional Sale.
11. Atkins, Kroll v. Cua Hian Tek Art 1324 is modified by Art. 1479. The former is the
general rule while the latter is an exception. If the option
General Rule: 1324. When the offerer has allowed the offeree a period to
accept, such offer maybe withdrawn any time before the offeree accepts.
is given without a consideration, it is a mere and valid
Exception: 1479, paragraph 2. Such is founded upon consideration as offer of a contract of sale, which is not binding until
something paid or promised.
accepted, abandoning the ruling in the Southwestern
Sugar and Molasses Co.
12. Natino v. IAC CONTRARY RULING. The commitment by a bank to
resell a property within a specified period, although
accepted, or a promise of extension of redemption of sold
property by a third is not the promise contemplated in
Art 1479, as it is not founded upon consideration and it
is distinct from the purchase price.
13. Serra v. CA Contracts of adhesion where in one party stipulates and
the other merely affixes his signature is as binding as
The withdrawal came AFTER the acceptance. In this case, the contract
becomes a bilateral contract to sell and buy.
any other ordinary contract because in reality, he is free
to reject it. The price of two hundred ten pesos per
square meter is considered price certain albeit grossly
inadequate (1470). What prevails is the intention of the
contracting parties.
19. Filinvest Credit Corp v. CA Lease or sale on instalments, Recto Law must still apply;
Rent-to-own salesThe real intention of the parties
should prevail. Upon the completion of the payments,
the rock crusher, subject matter of the contract, would
become the property of the private respondents. This
form of agreement has been criticized as a lease only in
name.